Free Supercharging is Back For Model S and X Buyers

[Drew Dowdell]

After seeing its sales slide during the first quarter of this year, Tesla needed to come up with an incentive to help boost sales of the sagging Model-X and Model-S.   In that effort, Tesla is returning the offer of free SuperCharging on all Model-S and Model-X sold.  The plan was last offered in 2018 and then ended after Elon Musk called the plan unsustainable. 

Telsa has been making changes to their lineup and pricing almost monthly since the beginning of 2019, so this could be a short term offer or it could stick around longer. Tesla buyers who already purchased their car are out of luck though, the offer only extends to new purchases. 

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[balthazar]

Two huge huge problems: Tesla raised the ante for an S or X by around $18,000, and the models are now quite dated; S is going to be NINE years old next month.

[Drew Dowdell]

1 minute ago, balthazar said:

Two huge huge problems: Tesla raised the ante for an S or X by around $18,000, and the models are now quite dated; S is going to be NINE years old next month.

hence the incentives.

I think part of the S's problem is that the people who had the money for an S, but are fine with a 3 went to that car instead, for the same reason people who can afford an S-Class often buy an E-Class or C-Class instead.  If you really wanted an EV, but didn't care about the extra fluff of the S, then the 3 makes much more sense. 

[David]

1 hour ago, balthazar said:

Two huge huge problems: Tesla raised the ante for an S or X by around $18,000, and the models are now quite dated; S is going to be NINE years old next month.

On top of that, as other auto makers from startup Rivian who starts full scale production in September to GM, MB, etc. start bringing their EVs to market this fall and spring of next year, Tesla is gonna have a much bigger group of competition to deal with and their dated design and incentives will not be enough to change this. 

If reports are true that the S and X will also go to the cheaper single center screen but just nicer interior materials, it will be harder for them to really sell that at the mark ups they are pushing. Then put on top of this that there are pictures of an EV Escalade of which GM has been saying an auto like that will have at least a 400 mile range battery pack, I think Tesla is gonna be in a big world of hurt come this time next year.

[riviera74]

Next five years will be a world of hurt if Tesla does not innovate and get its financial house in order.

[Drew Dowdell]

22 minutes ago, riviera74 said:

Next five years will be a world of hurt if Tesla does not innovate and get its financial house in order.

If they make it 5 years. 

[David]

49 minutes ago, Drew Dowdell said:

If they make it 5 years. 

I give them 24 months for either becoming black due to the Model Y, Pickup truck and Semi if they actually get them all to market.

My gut tells me that Tesla could end up having a major Chinese owner with a large share of the company for some serious coin to stay afloat.

[balthazar]

Incentives for a really old model don't general work well, esp if those incentives are only nibbling at the recent huge price increase.

Model Y should do well volume-wise, but I'm under no impression that it'll turn a profit. Then again; it may well kill off the Model X, saving some monies eventually.

The pickup & semi are too vaporous to determine if they bring anything to the table / competitive with the established brands. Early press release dribbles you might as well throw right out the window. If the small Model X is $110,000, the more complex/capable pickup is likely to be $125,000, and the semi a few hundred thousand more than it's competition. This is rarified, 'luxury' pricing well above any such existing models in those segments. A poor business plan moving forward.  

If Rivian or Atlis ever get off the ground with production & nailed-down pricing, they may undercut the eventual Tesla pickup by 10s of thousands. 

There's no rosy glow on the horizon for Tesla IMO - their salad days may well be behind them.

Edited August 5, 2019 by balthazar